What is the variance of the​ stock's returns? Var(R) = 1/4-1 x [(-0.0455-0.1033)^2+(0.2852-0.1033)^2+(0.1261-0.1033)^2+(0.0473-0.1033)^2]
The variance of the​ stock's returns is
enter your response here.  ​(Round to five decimal​ places.)

 as np

# Given values for the calculation
returns = [-0.0455, 0.2852, 0.1261, 0.0473]
mean_return = 0.1033

# Variance formula calculation
variance = (1 / (4 - 1)) * sum((x - mean_return) ** 2 for x in returns)

# Round to five decimal places
variance_rounded = round(variance, 5)
The variance of the stock's returns is **0.01963**.

Would you like a detailed explanation or have any questions? Here are some related questions to deepen your understanding:

1. How is variance used to measure the risk of a stock's returns?
2. What is the difference between variance and standard deviation in financial contexts?
3. How would the variance change if additional data points were added?
4. Can you explain why dividing by \( n-1 \) (instead of \( n \)) is used in this calculation?
5. How does the mean return affect the calculation of variance?

**Tip:** Variance provides a good measure of dispersion but interpreting it alongside the mean return is crucial for investment decisions.

What is the variance of the​ stock's returns? Var(R) = 1/4-1 x [(-0.0455-0.1033)^2+(0.2852-0.1033)^2+(0.1261-0.1033)^2+(0.0473-0.1033)^2]. The variance of the​ stock's returns is (Round to five decimal​ places).

Learn how to calculate the variance of stock returns using the formula Var(R) = (1 / (n - 1)) × Σ(x_i - mean)^2. This problem involves statistical concepts such as mean, dispersion, and variance. Given returns: [-0.0455, 0.2852, 0.1261, 0.0473] and mean return: 0.1033, the solution demonstrates detailed steps, yielding a variance of 0.01963 (rounded to five decimal places). Perfect for Grades 10-12 students.

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